A question of logic?

WAREHOUSES PER se are probably not a priority for the Government right now, there again it does not seem that logistics is either with no dedicated logistics minister in the offing despite concerted lobbying by the UKWA and Logistics UK prior to the General Election with the full support of the British Property Federations’ industrial and logistics forum.

But there wasn’t a dedicated Logistics Minister in the last government either – it takes time to change attitudes and educate people to the importance of logistics to the UK economy.

However deeply frustrating that is there is progress being made – at least now logistics and warehousing provision is actually acknowledged in the new National Planning Policy Framework – a few years ago in a Government White paper there was not a single mention.

It is deeply frustrating that it gets its acknowledgment at the end of a whole list of seemingly ‘sexier’ economic uses such as data centres and giga factories, laboratories and digital infrastructure and that ministers are quick to laud data centres which provide little employment rather than employment rich distribution centres.

It is interesting to note that the new NPPF does not set out employment floorspace targets, nor does it prescribe any method for assessing employment land supply in stark contrast to its housing figures where housing targets are now mandatory for local authorities which must demonstrate not a five year but a six year housing supply.

The NPPF is aimed at securing the 1.5 million new homes the Labour Government promised would be built by 2029 when it came to power in July.

This promise will also drive the need for an extra 145 million ft2 of warehousing to serve those homes. Research in 2019 when online penetration was just 19% noted that for every home in the UK there is a requirement of 69 ft2 of warehousing needed to support it. Internet sales as a percentage of total retail sales has increased nearly 40% since then and a corresponding warehouse requirement per household would now be 96.6 ft2 per household.

That is a lot of warehouse requirement - perhaps market forces will hold sway – but more telling will be the complaints from homeowners regarding parcel deliveries, complaints about too many vans on the road, a lack of jobs, increasing electricity prices and the realisation will come that in order to secure their ambitions and garner a further term in office it will have to put in place the infrastructure to service all these homes as well and the simplest solution will be to specifically encourage the development of warehousing in the right locations close to conurbations and on motorway junctions not just to be more sustainable and get vehicles off the road, not just because they will provide the jobs, not just because putting solar on warehouse roof space is plain common sense but because the modern day warehouse is integral to the UK economy without it nothing can get done efficiently, sustainably and economically.

To be honest it is logical – but who said any government was logical?

PULL

It is interesting to note that the new NPPF does not set out employment floorspace targets.